Pharmaceutical multinational Ranbaxy Laboratories has hired Boston Consulting Group (BCG) and Mercer to support a large strategic transformation aimed at achieving ‘world class operations’. The so-called RISE project was designed earlier this year and will be concluded by the end of 2013.

''BCG and Mercer have recently been hired by our management team. Both consultants are working with the management, as well as employees across functions and ranks to establish best practices'' a company source told the Indian newspaper Business Standard. ''The two consulting firms are currently working on the analysis phase''.

RISE

The transformation – known as project Ranbaxy Institutional Simplicity and Excellence (RISE), has two main phases. The analysis phase will investigate industry best practices and benchmark Ranbaxy Laboratories' operating standards and staff productivity against best practices. The second phase includes implementing improvement initiatives within the organization. The functional scope of the project goes across the entire manufacturing value chain, from innovation to production and supply chain.

The main efficiencydriver will follow from 'rightsizing' the organization. “We want right staffing. We have not given any guidance to BCG and Mercer but ultimately we want to have the right number of people to ensure our operations remain competitive in the marketplace” says Arun Sawhney, Chief Executive Officer of Ranbaxy.

According to the source the project team also has the mandate to act immediately: “The consultants are assessing the staff-productivity ratio and wherever there is a need, they will adjust it” says the insider. “Restructuring had already started at the top management and second- and third-level employees will be impacted soon as well”.

Fraud

The strategic project has no direct relation to the recent issues Ranbaxy Laboratories has faced which have received global media coverage. Approximately a month ago Ranbaxy was found guilty to fraudulent statements to the US drug regulator. The Pharmaceutical giant agreed to pay $500 million as penalty to the US Department of Justice.